How to buy an oil and gas lease from the Alberta government
Edmonton – A company called Calgary Energy is offering an oil lease to Alberta’s public sector employees.
Calgary Energy says it is seeking to make its oil lease with the Alberta Department of Finance (EDF) more competitive with other leasing options offered in Alberta.
The Edmonton company says it will be paying $7.50 per thousand cubic metres (qcm) of oil and $2.00 per qcm of natural gas to the EDF.
The EDF has been asking for an offer for more than two years.
The company says the offer is a reasonable price and has been able to meet that by negotiating with Alberta’s largest oil and natural gas producer, the Suncor Energy Corporation.
It also says that it is willing to pay less than the price it has been offering.
In its application to the Alberta Government for a lease with EDF, Calgary Energy said that it wants to offer a lower price than it has to its employees.
“Our goal is to offer the lowest price possible for Alberta employees,” Calgary Energy CEO Dan McClellan said in a statement.
“We will be providing competitive offers to the government of Alberta.”
The company also says it wants employees to be able to choose a price, instead of the EDFs.
“It is essential that employees be able see how much they are paying for their services,” McClellan said.
“The cost of doing business in Alberta is an important factor for our business and we want our employees to know how much we are willing to spend to provide them with the best service possible.”
The EDFs’ office has not responded to requests for comment.
The Alberta government says that Edmonton Energy has been negotiating with the EDAs oil company for more years than it had expected, but has been unsuccessful.
Edmonton Energy said in its application that it was looking for a cost-effective solution to reduce costs.
“Edmonton Energy is committed to providing the best value to the Albertans it serves,” McCrellan said.
Calgary’s application also said that its offer will provide for a lower royalty rate and that it will not seek to impose an upfront cost on Alberta taxpayers.
Alberta Premier Alison Redford, who has been critical of Calgary Energy’s approach to negotiating with oil companies, said she was disappointed that Edmonton was seeking to undercut the Alberta governments efforts to find a way to provide better services to Alberta taxpayers while the province was trying to attract investment.
“There is no question that Calgary Energy has offered an offer that is a lower than what Alberta is offering, and they have done that with the expectation that Alberta will negotiate with them,” Redford said.
McClelloans response to Alberta Premier Redford has not been returned.